The 20% does not apply if purchased dollars are deposited in a bank for a year

The Government today made ​​official the perception of 20% on account of mono-tax and Earnings in foreign exchange for the purchase of securities by individuals and ordered the withholding shall not apply when the foreign currency is deposited, for a period not less than 365 days, in an account at a financial institution.

The move was arranged through General Resolution 3583 of the Federal Administration of Public Revenue (AFIP), published in the Official Gazette, and is part of the Executive decision to re- enable the purchase of foreign currency for hoarding , announced Friday the Cabinet Chief Jorge Capitanich, and Economy Minister Axel Kicillof .

“To establish regime perception of 20% will be applied on acquisitions of foreign currency made ​​by individuals to hold foreign banknotes in country according to the operational guidelines in the context of exchange rate policy, determined by the Central Bank of Argentina (BCRA )” says in its Article 1.

However, the legislation clarifies that “perception does not apply when the foreign currency purchase is deposited, for a period not less than 365 days, in an account of a financial institution covered by Law No. 21,526 , as amended, on behalf the purchaser thereof and pursuant to the procedure established by the Central Bank of Argentina.”